Who's the Boss at the Top? A Micro‐Level Analysis of Director Expertise,Status and Conformity Within Boards

In this paper we address how director expertise impacts a director's social status and conformity within the board. Our results, derived from two unique multi‐source datasets of peer ratings on director status and conformity of non‐executive directors from Dutch organizations, indicate that industry‐specific expertise and financial expertise differently impact directors’ social status and influence within the board. We find that directors’ individual performance orientation – the motivation to demonstrate expertise – acts as an important contingency for expertise to increase directors’ status within the board. Additional analyses using archival data and interviews with non‐executive directors substantiate our findings and provide additional insight into the dynamics operating within boards. This study extends existing research on boards of directors and provides unique micro‐level insights into the boardroom dynamics that connect director expertise to director status and conformity within boards.     

Attention to Fairness versus Profits: The Determinants of Satisficing Pricing

We investigate determinants of the competitive behaviour of satisficing, non‐profit‐maximizing pricing. Taking a behavioural approach, we argue that pricing decisions are motivated by fairness objectives as well as the desire to achieve economic objectives. We draw from the attention‐based view to build our theoretical model explaining the contextual conditions that are most likely to be associated with attention to fairness relative to attention to achieving maximum profits when setting prices. Our hypothesized predictors of satisficing pricing decisions encompass the institutional context in which the firm is embedded, the exchange context with customers and suppliers, and the context internal to the firm. Hypotheses are tested with survey data of over 3000 firms from 15 countries. We find that the decision to set prices at a satisficing level is remarkably common, and its prevalence is associated with contextual factors that are consistent with greater attention to fairness concerns.     

What Motivates Experts to Share? A Prospective Test of the Model of Knowledge‐Sharing Motivation

Knowledge sharing is an employee behavior, critical to organizational success in knowledge‐intensive work environments. This study set out to empirically test the model of knowledge‐sharing motivation designed and presented in this journal by Gagné (2009). The model combines two established behavioral theories, the theory of planned behavior and self‐determination theory, and connects various human resource practices to it. This prospective survey study ( n = 200) in a large expert organization employed structural equation modeling. The results mainly supported the proposed model, with attitudes, autonomous motivation, and sharing norms predicting knowledge‐sharing intentions ( R² = .69), which predicted knowledge‐sharing behavior ( R² = .42). We also identified potential ways to modify the model to better suit typical knowledge‐sharing contexts. Implications for practice, with the emphasis on how our findings can benefit and be used by human resource management, are discussed. © 2016 Wiley Periodicals, Inc.     

Revenge Exacerbates the Effects of Interpersonal Problems on Mentors’ Emotional Exhaustion and Work‐Family Conflict: A Self‐Defeating Perspective

Drawing on conservation of resources theory, this study examined the link between negative mentoring experiences (i.e., interpersonal problems) perceived by mentors and their work‐family conflict (WFC) by focusing on the mediating role of emotional exhaustion and the moderating role of revenge. The results of a field survey of 187 mentors in China supported all of our hypotheses, indicating that interpersonal problems perceived by mentors were positively related to their WFC. This relationship was also found to be mediated by the mentors’ emotional exhaustion. In addition, revenge against protégés was found to moderate the main effect of interpersonal problems on emotional exhaustion and the indirect effect of interpersonal problems on WFC. Specifically, revenge exacerbated the positive relationship between interpersonal problems and emotional exhaustion. Further, emotional exhaustion mediated the indirect effect of interpersonal problems on WFC when the level of revenge was high, but not when it was low. The findings of this study provide insightful theoretical contributions and managerial implications that indicate new directions for research related to mentoring and work‐family relationships. © 2016 Wiley Periodicals, Inc.     

High‐Performance Work Systems in Professional Service Firms: Examining the Practices‐Resources‐Uses‐Performance Linkage

Professional service firms (PSFs) play an important role in the knowledge‐based economy. Their success is highly dependent on their people, the knowledge resources they possess, and how they use these resources. However, how to systematically manage human resources to attain high performance is not fully understood. This study addresses this issue by investigating the linkage mechanisms through which high‐performance work systems (HPWS) influence the performance of PSFs. We integrate resource‐based and dynamic capability theories in order to identify and investigate two intervening mechanisms that link HR practices to firm performance. The first mechanism is the intellectual capital resources comprising the human, social, and organizational capital that HPWS create. The second mechanism is the uses to which both HPWS and resources can be applied, operationalized as organizational ambidexterity, the simultaneous exploitation of existing knowledge and exploration of new knowledge. These mechanisms are hypothesized to link HPWS to firm performance in the form of a practices‐resources‐uses‐performance linkage model. Results from a longitudinal study of 93 accounting firms support this linkage model. © 2015 Wiley Periodicals, Inc.     

Real Geographies,Real Economies and Soft Spatial Imaginaries: Creating a ‘More than Manchester’ Region

This article develops a framework for analysing region‐building processes as spatiotemporal constructs, involving competing spatial imaginaries and attempts at consolidating these through institution building. Central here is the performative role of what we refer to as ‘soft space imaginaries’ in the ‘phased’ building of regions for planning and economic development over time. We demonstrate how this understanding can be used to examine the phased enactment of successive waves of region‐building by tracing the evolution of multiple soft spatial imaginaries in north‐west England. The analysis exposes the variable logics, alliances of actors, and tactics used to build momentum and secure legitimacy around preferred imaginaries which advocates often promoted on the grounds that they somehow reflected ‘real geographies’ or ‘real economies’. In this context, soft space imaginaries are seen to play an integral role in intellectual case making about the contemporaneous form and purpose of subnational governance. Yet our analysis also exposes the durability of past soft space imaginaries and their continued impact on efforts to build new soft spaces. What emerges is an understanding of soft space imaginaries as more than just superficial representations. They can help determine where government investment is channelled and into what kinds of policies.     

Commitment to Sustainability in Small and Medium‐Sized Enterprises: The Influence of Strategic Orientations and Management Values

Ecosystem degradation and social sustainability have become important issues in the corporate sphere during the last few decades. However, research discussing corporate social responsibility and related concepts has often focused on larger companies, sometimes neglecting the specifics of small and medium‐sized enterprises (SMEs). The main purpose of this study is to examine the relationships between two common strategic orientations, market orientation (MO) and entrepreneurial orientation (EO), in relation to sustainability commitment, sustainability practices and management values in SMEs. Questionnaire responses from 450 Swedish SMEs were analyzed, confirming the influence of MO, EO and sustainability practices on commitment to sustainability, implying that firms committed to sustainability see both market and entrepreneurial advantages of sustainability. The results also show that different parts of MO and EO differ in importance for commitment to sustainability among SMEs. Implications concern the importance for firms and policymakers to work with sustainability issues using both internal and external perspectives. © 2015 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd     

Analysing Tax–Benefit Reforms Using Non‐Parametric Methods*

Static tax–benefit microsimulation models (MSMs) are widely used and well‐regarded tools for public policy analysis, but it is essential to use them very carefully. This paper focuses on the analysis of MSM output, suggesting the use of non‐parametric methods as a useful, informative and relatively straightforward complement to detect effects not always captured by measures often used to present MSM results. Non‐parametric methods are used here to analyse the output of an MSM applied to the 1998 Italian personal income tax reform, the main change in which concerned the tax schedule: the first tax rate was increased from 10 per cent to 18.5 per cent and the top one was reduced by 4.5 percentage points. Non‐parametric methods highlight that the effects of this reform were very different for different types of households, with low‐income pensioner households among the main losers. Results are checked for robustness by standard statistical methods and compared with empirical results obtainable using quintile histograms.     

An analysis of majority owner‐managed companies in the UK

This paper investigates the characteristics of 73 UK companies in which managers have an ownership stake of greater than 50 per cent. We find that majority owner‐managed companies make less use of alternative corporate control systems and are less likely to remove their chief executive officer or other board members following poor performance. However, our sample firms actually outperform diffusely held companies of similar size in the same industry. The determinants of majority control appear more closely related to the characteristics of the controlling shareholders rather than the firm's operating environment. Changes in the ownership structure of our sample companies owe more to changes in owner‐specific characteristics and security issuance than they are related to changes in the company's operating environment or company performance. We conclude that despite the obvious agency costs of managerial entrenchment for closely held companies, for the present sample at least the incentive alignment benefits of large director shareholdings are beneficial to outside shareholders.     

Benchmarking benchmarks: measuring characteristic selectivity using portfolio holdings data

This study proposes methodological adjustments to the widely adopted performance benchmarking methodology of Daniel et al. (1997 ) as a means of improving the precision of alpha measurement for active equity fund managers. We achieve this by considering the monthly updating of characteristic benchmarks and to ensure neutrality to the Standard & Poor's/Australian Stock Exchange 300 index. Applying this benchmark to a representative sample of active Australian equity funds and simulated passive portfolios that mimic fund manager‐style characteristics, we find statistically different and lower tracking error compared with using the standard characteristic benchmark methodology. We also find evidence that the modified benchmark statistically infers an alpha closer to zero compared with the standard benchmark methodology. Our findings suggest that improved specifications of characteristic benchmarks represent better methods in quantifying fund manager skill.